Moody's downgraded the US credit rating, highlighting risks associated with rising national debt as new tax cuts, favored by the Trump Republican package, are proposed. These cuts could exacerbate the situation, prompting bond vigilantes to sell US debt, which in turn raises long-term interest rates. Some rightwing Republicans are using the downgrade to advocate for reductions in social programs, while critics suggest that restoring higher taxes on the wealthy could better address federal debt than cutting essential services for low-income Americans.
The US's credit rating downgrade indicates increasing lending risk due to rising debt levels, worsened by proposed tax cuts for the wealthy and corporations.
Instead of financing the government through their taxes, the super-rich have been financing it through lending it money, emphasizing the burden on lower-income Americans.
Moody's downgrade of the US credit rating is being used by some Republicans to justify cuts to essential social programs like Medicaid and food stamps.
Historically, high-income individuals financed the government through substantial taxes; now, tax cuts on the wealthy have led to greater national debt and increased reliance on lending.
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